Question about Canadian appraisal standards

[Terrel L. Shields]

I like Canadians; they're like Americans, but nicer.

National Lampoon described them as sort of Nebraskans only more boring...

The standards in Canada relate to their association standards - there are no national standards the way I understand it. The state oversees the Assocations. I like that system reasonably well.

U. S. standards are the most convoluted in the world, though they may be by some measure the "highest".... Frankly, imho, there is no appraisal or so few that can truly comply with USPAP. Remember in 1994 with TAF admitted that the original USPAP was flawed because, in effect, you were not able to comply with it due to internal conflicts in the verbiage. I personally think the document is worse than it was then.

 

[Diego Lopez]

U. S. standards are the most convoluted in the world, though they may be by some measure the "highest".... Frankly, imho, there is no appraisal or so few that can truly comply with USPAP. Remember in 1994 with TAF admitted that the original USPAP was flawed because, in effect, you were not able to comply with it due to internal conflicts in the verbiage. I personally think the document is worse than it was then.

Hi Terrel, please, can expand on this. Thanks.

 

[robertp]

Canadian Appraisal Standards "CUSPAP"

The Appraisal Institute of Canada, a Canadian national not for profit association pushlishes in the public domain, CUSPAP, "Canadian Uniform Standards of Professional Appraisal Practice". They are often cited in works by non-members who indicate that they practice in compliance with these Standards.
The CUSPAP were amended in latest edition to ensure compliance with International Valuation Standards, same as USPAP, and to provide compliance guidance to those practicing in areas of International Financial Reporting Standards.
The Institute sets university based education and experience requirements for the two national and internationally recognized designations: CRA and AACI. The Institute is in process of renewing its Memorandum of Understanding with the Appraisal Institute in USA for ongoing mutual recognition of each others designations.
Many government departments, the courts and lenders recognize the desigations and the standards as fully meeting their requirements wether that be for underwriting, review or consulting, tax purposes, expert witness testimony etc.
The Standards are not legislation, and so Appraisers must comply with the Standards and any applicable legislation either Federal or Provincial, no different than state licencing, legislation and USPAP demand of American appraisers. Many Canadian Appraisers practice on both sides of the border and are most competant in satisfying a client's requirements.
For details visit them at www.aicanada.ca

 

[AnonApprsr]

How can you review appraisals from Canada, when you're not competent?

 

[Pittsburgh Pete]

How can you review appraisals from Canada, when you're not competent?

And you base that conclusion on what? Don't think you're competent to comment on his competence!

 

[robertp]

Appraisal Review

How can you review appraisals from Canada, when you're not competent?

The appraisal review process in Canada including the competancy of the review appraiser are no different than they are in the USA.

 

[robertp]

Find a Real Value Expert

In the latest appraisal I've read, 190 acres in rural north Saskatchewan, the appraiser based his value on the undisclosed extraordinary assumptions of:

1. A zoning change to commercial zoning.
2. That the land had already been legally subdivided.
3. Approval of a final plat map.

None of these things have happened, but this was not disclosed in the report. The value was based on the sellout of residential lots which have not yet been legally created. Current zoning allows only two to four residences on the entire 190-acre site.

It's not my intent here to criticize Canadian appraisers. I like Canadians; they're like Americans, but nicer.

I'm just curious about the rules they have to follow and where to turn to in Canada for a realistic "as is" appraisal.

I have a client that lends internationally, and I need to keep up with the differences in appraisal practices in other countries. Since Canada is their leading foreign source of loan applications, I need to know how to search for Canadian appraisers willing to comply with American appraisal standards.

U.S. appraisal standards appear to be the highest in the world; none of the foreign appraisals I read measure up to them.

You may search the Appraisal Institute of Canada site for appraisers across Canada for any property type at: http://component.aicanada.ca/e/findappraiser_find.cfm

 

[AnonApprsr]

Then I'd venture that you aren't competent to review in Canada if you aren't licensed there.

I'd also prefer if reviewers had to be licensed from the state that the appraisal was performed in. As I commented in another thread, in the review forum, it's ignorant to do otherwise. But that's my just my humble, dumb, opinion.

 

[robertp]

licensing

Then I'd venture that you aren't competent to review in Canada if you aren't licensed there.

I'd also prefer if reviewers had to be licensed from the state that the appraisal was performed in. As I commented in another thread, in the review forum, it's ignorant to do otherwise. But that's my just my humble, dumb, opinion.

So what if only 3 of the Canadian Provinces and Territories out of 13 had licencing and the rest were satisfied with the current arrangement of CUSPAP published and designations granted by Appraisal Insitute of Canada in lieu of provincial licencing? Otherwise I agree if your state or country has a licensing scheme for provision of appraisal services then you should be licenced, but then is that not what professional ethics should address?

 

[AnonApprsr]

So what if only 3 of the Canadian Provinces and Territories out of 13 had licencing and the rest were satisfied with the current arrangement of CUSPAP published and designations granted by Appraisal Insitute of Canada in lieu of provincial licencing? Otherwise I agree if your state or country has a licensing scheme for provision of appraisal services then you should be licenced, but then is that not what professional ethics should address?

So what? Anyway, I think (extreme scenarios aside), that reviews should only be performed in state, by appraisers licensed there and competent in the area.